Failure to File Form 5500-EZ

[Guest Ted Kowalchuk, CFP, CFS,]

The DOL's website advises that the DFVC program is not available to Form 5500-EZ filers. A new client has advised he has never filed the 5500-EZ and his plan was established in 1994. In 1997 his assets exceeded $100K. What relief can he seek from DOL/PWBA/IRS?

[jpod]

Assuming he is legitimately an EZ filer for all late years, he does not need any relief from DOL/PWBA, because there are no penalties subject to their jurisdiction.

He needs relief from IRS for late filing penalties. There is no "program" such as DFVC for EZ filers. The client has a legal obligation to file. However, based on the facts you presented, if the EZs are prepared and filed with a statement of reasonable cause before the IRS finds him, the chances are high, in my estimation, that the IRS will not assess penalties. The statement of reasonable cause should be simple; something like: "I never filed 5500s before, and I didn't know I was supposed to file until my new advisor told me about the requirement."

[Lynn Campbell]

I have a client with late 5500-EZ forms to file for years from 1998 through 2001. Should all the forms be sent to PWBA?

[jpod]

yes